At some point, you may decide to stop doing business in Japan and close your Japanese company.

The procedure for closing a KK is generally as follows:

First, you must hold a shareholders’ meeting and pass a resolution to dissolve the company.

Once the resolution is adopted, the company enters into liquidation.

During the liquidation process, the company must wind up its operations. This includes terminating employees, paying off debts to creditors, and selling its assets to convert them into cash for distribution to shareholders.

The liquidation is handled by a liquidator. Unless otherwise provided in the Articles of Incorporation, the directors automatically become liquidators.

After all debts have been paid and the liquidation is completed, any remaining assets are distributed to shareholders in proportion to their shareholdings.

Finally, the liquidator must register the completion of the liquidation with the Legal Affairs Bureau that has jurisdiction over the location of the company’s head office.